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August 17, 2017 at 5:00 pm PST — August 26, 2017
ERC20 token (known as MANA) sent to your Ethereum wallet.
40% sold during crowd sale
20% reserved for community and partners
20% reserved for the Decentraland team and early contributors
20% reserved for the Decentraland Foundation
Variable MANA supply, depending on the outcome of ICO.
Inflationary: 8% for the first year with a lesser rate in subsequent years. This enables the Decentraland team to implement a Continuous Token Model, where new MANA tokens are continuously created at a pre-determined rate to facilitate the expansion of the Decentraland user base and world. This continuous token emission is done through a smart contract.
Note that the token supply may actually be deflationary in practice, due to the fact that MANA is destroyed permanently when users claim LAND.
August 8th: $24 per 1,000 MANA ($0.024 per MANA)
August 9th: $26 per 1,000 MANA ($0.026 per MANA)
August 10th: $28 per 1,000 MANA ($0.028 per MANA)
August 11th: $30 per 1,000 MANA ($0.03 per MANA)
August 12th: $32 per 1,000 MANA ($0.032 per MANA)
August 13th: $34 per 1,000 MANA ($0.034 per MANA)
August 14th: $36 per 1,000 MANA ($0.036 per MANA)
August 15th: $38 per 1,000 MANA ($0.038 per MANA)
August 16th: $40 per 1,000 MANA ($0.04 per MANA)
$20 million USD hard cap
Three year vesting period for founders with 1 year cliff (i.e. 33.33% of founders tokens are unlocked each year.)
What is Decentraland?
As the name might imply, Decentraland is a decentralized, shared virtual world in which developers and content creators can build and monetize applications. This concept is known as a metaverse, defined by Wikipedia as “a collective virtual shared space, created by the convergence of virtually enhanced physical reality and physically persistent virtual space.” While this concept has been present in science fiction for quite some time, it is only now that the concept is coming to fruition.
Within the Decentraland metaverse, users can navigate and interact with other people and entities within the world and claim ownership of virtual land. This land is finite and is identified by a series of coordinates within the virtual world. Developers and users can build anything they’d like on their claimed land, from 3D scenes to games. Because the platform is peer-to-peer, it is not susceptible to censorship by governments or other entities, which will allow for a truly free virtual world (and potentially virtual economy) to thrive.
The core ownership mechanism of Decentraland is an Ethereum smart contract that verifies the ownership of each parcel of land. Users can purchase any parcel of land in the world, so long as it is adjacent to another parcel of land. While LAND is a non-fungible asset within Decentraland, users can purchase LAND at a fixed cost of 1,000 MANA. MANA is a fungible ERC-20 token that will be sold during the Decentraland ICO and continuously sold to users thereafter. One unique mechanism of LAND registration is that the 1,000 MANA used to purchase the land are destroyed as a function of the LAND registry smart contract.
In addition to being used for the purchase of LAND, MANA can be used to purchase services and items within the virtual world.
Even though LAND is non-fungible, LAND will still be sellable and transferable much like real estate in the real world. Decentraland has partnered with district0x to enable users to easily list, buy, and sell land on a decentralized marketplace (known as a district) through the district0x platform. This presents an incredibly interesting economic implication wherein many users may purchase land, and try to drive more traffic to that parcel of land, in order to increase the value of that land before selling it to another user. In addition, there is the potential for users to lease their land, or advertising space on their land, to real companies and organizations trying to market to the participants of this new, virtual world.
Those familiar with the game Second Life will find immediate similarities between the now inactive virtual world and Decentraland. Second Life enabled users to purchase land and build virtual businesses on top of that land, but all of the content was stored in a centralized world on a centralized server controlled by one company. In addition, the currency that users used to purchase land and other items in Second Life had a market price that was completely centralized and controlled by the company and never open to the free market. Even though Second Life was completely centralized, it did show the potential for virtual worlds and virtual economies that have real world value. Particularly ambitious users purchased land and built real businesses, such as strip clubs, on top of that land and later sold those virtual businesses to other members of the community, sometimes for more than $100,000.
While Second Life and Decentraland are similar in many ways, Decentraland vastly improves on this concept of a virtual world and virtual economy by completely removing all restrictions. For example:
- The Decentraland platform is decentralized, so no single entity controls it.
- As a result of the above, the world (and the content within it) cannot be censored by anyone.
- MANA and LAND have their own respective values that are determined by the free market, not a centralized entity.
- LAND enables users to build anything they’d like, not just a 3D space or business. For example, a developer could build a virtual casino or an entirely separate video game on a parcel of LAND and allow users to access their creation through the Decentraland world. Because of this, the possibilities of what users will create inside Decentraland are virtually endless.
Overall, Decentraland provides the framework for users and developers to buy and sell LAND and create a virtual economy in virtual reality.
Stone Age — June of 2015
The Stone Age was a 2D implementation of Decentraland which served as a proof-of-concept. It enabled users to buy unique pixels on a 2D grid, change the color of those pixels, and transfer ownership of those pixels to others.
Bronze Age — Early 2017
The Bronze Age was a 3D implementation of Decentraland in which the blockchain stored the full content description of each parcel of land. A web demo is available that can be explored with or without a VR headset.
The Iron Age — Q4 2017 / Early 2018
The Iron Age will build upon the foundation of the Bronze Age by implementing the following features:
- P2P network for user interaction
- A micropayment system for the in-world economy
- A land management interface to develop, buy, rent, and sell LAND parcels
- A scripting language for programming experiences within the world
Decentraland recently published a blog post that offers an in-depth look at the background and experience of the key members of the Decentraland team. We have verified the authenticity and legitimacy of the information presented. You can view that blog post here.
What is the metric for the success of Decentraland?
The metric for the success of Decentraland is clear and straightforward: user adoption. Even if users purchase LAND parcels, which will likely be due to speculation in the early days of the platform, if users do not traverse the virtual world, the value of those LAND parcels will likely decline severely. In addition, the Decentraland team must attract talented developers to build engaging applications on LAND parcels within the Decentraland metaverse. The fact that 20% of all tokens are being allocated to the community and strategic partners is a strong move that will likely boost user adoption from the start.
In addition to the above, there are several technical hurdles that must be overcome which are detailed further in the Decentraland whitepaper.
If the Decentraland team can help foster user and developer adoption, it is likely that the platform will be a success, due to a domino effect. When one parcel of LAND is built upon, users will likely visit that parcel, thus increasing the value of the LAND around it, which will spur developers and users that own that land to either sell the parcel or build on top of it to capitalize on the traffic. As additional concepts are built on top of LAND, the LAND around those parcels will receive more traffic, and the cycle will continue. This domino effect could continue at a potentially exponential rate, with each new application vastly increasing the value of the surrounding Decentraland metaverse.
Considerations and Closing
Overall, Decentraland presents an incredibly compelling implementation of a metaverse — a concept that, until now, has been limited to science fiction. The team has allocated 20% of all MANA tokens to the community and their partners, which should incentivize new users to join and begin the aforementioned domino effect.
If the platform is successful and attracts new users and strong developer talent, it is possible that some users may actually work full time jobs inside of Decentraland, receiving payment in MANA tokens which they can easily convert into other cryptocurrencies to pay their expenses. Ultimately, the Decentraland team is highly experienced and capable to tackle this project, and seems to have a clear vision of the platform’s potential, and how it may develop in the future.
Decentraland website: https://decentraland.org/
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